Petrobras sold assets but did not lose its importance in the market. The state company plans to increase its investments this year to US $ 17.3 billion – up 30% compared to 2017 – and thus put into operation seven new platforms that promise to raise Brazilian oil and gas production to new historical records .
For the next few years, however, it is expected that the company’s contributions will reduce, while the big global oil companies are preparing to increase their investments and further divide the sector’s leading role with the Brazilian state-owned company.
In a spiral of turmoil since 2014, as oil prices and Car-Wash deployments have slowed oil and gas investments, confidence in the sector is beginning to show signs of recovery. The successful auctions of the National Petroleum Agency (ANP) last year, Petrobras’ divestment program and the resumption of works, such as the Comperj gas processing plant, give new energy to the oil industry.
For three consecutive years, according to ANP data, the exploration activity of new oil and gas discoveries promises to enter a new cycle of growth in the coming years. The expectation in the market is that the resumption will again turn the wheel of service orders and leverage the supply chain.
Petrobras, for example, intends to double exploration wells to an average of 29 wells per year by 2022, while other oil companies also plan to return to exploration in Brazil. This is the case of ExxonMobil, which, after acquiring 19 blocks in the last auctions, plans to start investing this year in deepwater exploration activities in the Sergipe-Alagoas Basin.
Shell and Statoil, which acquired the operation of pre-salt areas in last year’s sharing rounds, are other examples. While the Norwegian has plans to drill in Carcará Norte as early as 2019, and start producing in the field between 2023 and 2024, the Anglo-Dutch intends to start drilling in the south of Cat do Mato in 2019.
The year of 2018 should also mark the resumption of investments in Comperj’s Natural Gas Processing Unit , which will treat the natural gas produced from the pre-salt and whose construction was interrupted in 2015. According to the Metalworkers Union of Niterói and Itaboraí, the works must demand the hiring of up to 6 thousand employees. In all, 36% of the works have already been executed.
There is also an expectation in the market regarding the resumption of investments in refining. Petrobras is in negotiations with the Chinese CNPC for investments in the completion of the Comperj refinery. Last week, Petrobras launched the proposal for its partnership program in the sector, in which it intends to sell 60% stake in two regional hubs: the South and Northeast, which concentrate four refineries.
With this, the oil company expects to reduce its market share in refining from the current 99% to 75%. The entry of new agents in this market has the potential to boost investments in the national refining industry, attracting investments in installed capacity.
Source: Valor
Brazil Energy Insight 
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